Independent Director of Rapid Micro Biosystems Richard Kollender Buys 373% More Shares

Even if it's not a huge purchase, we think it was good to see that Richard Kollender, the Independent Director of Rapid Micro Biosystems, Inc. (NASDAQ:RPID) recently shelled out US$50k to buy stock, at US$0.77 per share. Even though that isn't a massive buy, it did increase their holding by 373%, which is arguably a good sign.

View our latest analysis for Rapid Micro Biosystems

Rapid Micro Biosystems Insider Transactions Over The Last Year

In fact, the recent purchase by Richard Kollender was the biggest purchase of Rapid Micro Biosystems shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of US$0.85. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider purchases were made at close to current prices.

In the last twelve months Rapid Micro Biosystems insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Rapid Micro Biosystems

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Rapid Micro Biosystems insiders own 21% of the company, worth about US$6.8m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Rapid Micro Biosystems Insiders?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Insiders likely see value in Rapid Micro Biosystems shares, given these transactions (along with notable insider ownership of the company). While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. In terms of investment risks, we've identified 2 warning signs with Rapid Micro Biosystems and understanding these should be part of your investment process.

Of course Rapid Micro Biosystems may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.